Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.
Solid track record with adequate balance sheet.
Share Price & News
How has Mastercard's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MA's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MA exceeded the US IT industry which returned -3.5% over the past year.
Return vs Market: MA exceeded the US Market which returned -11.5% over the past year.
Price Volatility Vs. Market
How volatile is Mastercard's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall StShould You Like Mastercard Incorporated’s (NYSE:MA) High Return On Capital Employed?
1 week ago | Simply Wall StA Sliding Share Price Has Us Looking At Mastercard Incorporated's (NYSE:MA) P/E Ratio
2 weeks ago | Simply Wall StLance Uggla Just Bought Shares In Mastercard Incorporated (NYSE:MA)
Is Mastercard undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MA ($247.65) is trading below our estimate of fair value ($282.86)
Significantly Below Fair Value: MA is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MA is poor value based on its PE Ratio (31x) compared to the IT industry average (24.8x).
PE vs Market: MA is poor value based on its PE Ratio (31x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: MA is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: MA is overvalued based on its PB Ratio (42.3x) compared to the US IT industry average (2.7x).
How is Mastercard forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MA's forecast earnings growth (11.2% per year) is above the savings rate (1.7%).
Earnings vs Market: MA's earnings (11.2% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: MA's earnings are forecast to grow, but not significantly.
Revenue vs Market: MA's revenue (9.8% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: MA's revenue (9.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MA's Return on Equity is forecast to be very high in 3 years time (123.3%).
How has Mastercard performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MA has high quality earnings.
Growing Profit Margin: MA's current net profit margins (48.1%) are higher than last year (39.2%).
Past Earnings Growth Analysis
Earnings Trend: MA's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: MA's earnings growth over the past year (38.6%) exceeds its 5-year average (15.2% per year).
Earnings vs Industry: MA earnings growth over the past year (38.6%) exceeded the IT industry 14.3%.
Return on Equity
High ROE: Whilst MA's Return on Equity (135.5%) is outstanding, this metric is skewed due to their high level of debt.
How is Mastercard's financial position?
Financial Position Analysis
Short Term Liabilities: MA's short term assets ($16.9B) exceed its short term liabilities ($11.9B).
Long Term Liabilities: MA's short term assets ($16.9B) exceed its long term liabilities ($11.3B).
Debt to Equity History and Analysis
Debt Level: MA's debt to equity ratio (142.3%) is considered high.
Reducing Debt: MA's debt to equity ratio has increased from 22.5% to 142.3% over the past 5 years.
Debt Coverage: MA's debt is well covered by operating cash flow (96%).
Interest Coverage: MA's interest payments on its debt are well covered by EBIT (76.1x coverage).
Inventory Level: MA has a low level of unsold assets or inventory.
Debt Coverage by Assets: MA's debt is covered by short term assets (assets are 2x debt).
What is Mastercard's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MA's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: MA's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (5.45%).
Stability and Growth of Payments
Stable Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: MA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ajay Banga (59yo)
Mr. Ajaypal S. Banga, also known as Ajay, has been the Chief Executive Officer of Mastercard Incorporated since July 1, 2010. He served as President of Mastercard Incorporated since August 31, 2009 until M ...
CEO Compensation Analysis
Compensation vs Market: Ajay's total compensation ($USD20.38M) is above average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Ajay's compensation has been consistent with company performance over the past year.
|CEO & Director||9.67yrs||US$20.38m||0.038% $95.8m|
|Chief Franchise Officer & General Counsel||5.92yrs||US$4.47m||0.0039% $9.8m|
|Executive Vice Chairman||no data||US$4.50m||0.0086% $21.3m|
|President of International Markets||6.58yrs||US$4.23m||0.0058% $14.4m|
|President of North America||5.92yrs||US$4.72m||0.0033% $8.2m|
|President||no data||no data||0.0021% $5.2m|
|Chief Financial Officer||0.92yr||no data||0.00068% $1.7m|
|President of Operations & Technology||2.83yrs||no data||0.0024% $5.8m|
|Corporate Controller & Principal Accounting Officer||2.92yrs||no data||0.000090% $224.0k|
|Executive Vice President of Investor Relations||3.33yrs||no data||no data|
Experienced Management: MA's management team is considered experienced (4.6 years average tenure).
|CEO & Director||9.67yrs||US$20.38m||0.038% $95.8m|
|Independent Director||5.75yrs||US$314.79k||0.00020% $497.8k|
|Independent Director||11.5yrs||US$335.09k||0.0025% $6.3m|
|Independent Chairman of the Board||13.5yrs||US$490.30k||0.0032% $8.0m|
|Independent Director||12.17yrs||US$317.59k||0.0030% $7.4m|
|Independent Director||3.75yrs||US$305.09k||no data|
|Independent Director||5.75yrs||US$328.59k||0.00020% $497.8k|
|Independent Director||13.5yrs||US$347.59k||0.0027% $6.8m|
|Independent Director||13.83yrs||US$335.09k||0.0042% $10.4m|
|Independent Director||8.92yrs||US$310.09k||0.0010% $2.5m|
Experienced Board: MA's board of directors are seasoned and experienced ( 10.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Mastercard Incorporated's company bio, employee growth, exchange listings and data sources
- Name: Mastercard Incorporated
- Ticker: MA
- Exchange: NYSE
- Founded: 1966
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$248.915b
- Shares outstanding: 1.01b
- Website: https://www.mastercard.com
Number of Employees
- Mastercard Incorporated
- 2000 Purchase Street
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|M4I||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||May 2006|
|MA||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||May 2006|
|M4I||XTRA (XETRA Trading Platform)||Yes||Class A Common Stock||DE||EUR||May 2006|
|MA *||BMV (Bolsa Mexicana de Valores)||Yes||Class A Common Stock||MX||MXN||May 2006|
|MA||SWX (SIX Swiss Exchange)||Yes||Class A Common Stock||CH||CHF||May 2006|
|0R2Z||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||May 2006|
|MAST||WBAG (Wiener Boerse AG)||Yes||Class A Common Stock||AT||EUR||May 2006|
|M4I||ETLX (Eurotlx)||Yes||Class A Common Stock||IT||EUR||May 2006|
|MSCD34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM CL 'A' USD0.0001||BR||BRL||Feb 2012|
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company offers integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. It also provides value-added products and services comprising safety and security products, loyalty and reward programs, information and analytics services, consulting services, and issuer and acquirer processing services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has strategic partnerships with Network International to develop electronic payments in Africa and the Middle East; and R3 to develop and pilot a new blockchain-enabled cross-border payments solution, as well as a strategic alliance with Finexio. The company was founded in 1966 and is headquartered in Purchase, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 01:28|
|End of Day Share Price||2020/03/27 00:00|